Article Archives >> Lead Stories >> October 16-31, 2006

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Group’s Transfer of Assets
May be Fraudulent Conveyance

Directors avoid liability under
Volunteer Immunity Act

A federal District Court in Missouri has refused to let a nonprofit organization off the hook for a $1.8 million judgment because it has no assets when the organization terminated an income-producing contract and transferred its assets to a new nonprofit it had formed. The Court has denied the organization’s motion for summary judgment to dismiss the case against it, but has dismissed the case for personal liability against two directors, including Congressman Emanuel Cleaver II, because of the state’s volunteer immunity law.

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Article Archives >> Lead Stories >> October 16-31, 2006




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